Slide 1: 2018 First half results
2018 First half results CONFERENCE CALL – 26 JULY 2018
Slide 2: First half 2018 highlights
First half 2018 highlights • Revenue € 696.1 million, up 6.9% • EBITDA € 260.0 million or 37.4% of sales, up 16.1% • Operating income (EBIT) € 231.9 million or 33.3% of sales, up 14.1% • Net income € 164.2 million or 23.6% of sales, up 11.7% • Net debt € 556.4 million, an increase of € 174.7 million
Slide 3: Main product sales
Main product sales Corporate products including drugs for rare diseases account for 68.2% of revenue (million Euro) 1H 2018 1H 2017 Change % Zanidip® (lercanidipine) 69.6 69.2 0.6 Zanipress® (lercanidipine+enalapril) 33.0 36.3 (9.1) Urorec® (silodosin) 51.2 46.5 10.0 Livazo® (pitavastatin) 24.0 19.4
Slide 4: A diversified product portfolio
A diversified product portfolio Other corporate products 12.0% Seloken®/Logimax® 7.2% Drugs for rare diseases 15.8% Livazo® 3.5% Urorec® 7.4% Zanipress® 4.7% OTC 15.5% Zanidip® 10.0% Subsidiaries’ local product portfolios 20.3% Pharmaceutical chemicals 3.0% Ortoton® (methocarbamol) ‐ Germany 3% Othe
Slide 5: Composition of revenue by geography
Composition of revenue by geography Continued growth (million Euro) 1H 2018 1H 2017 Change % Italy 141.2 138.7 1.8 Germany 68.6 54.3 26.3 France 65.5 60.1 9.1 U.S.A. 49.7 54.7 (9.2) Russia, other CIS countries and Ukraine 48.6 56.4 (13.8) Spain 43.8 40.2 9.1 Turkey 43.4 45.7 (5.1) Portugal 20.7 20.4
Slide 6: Geographical breakdown of pharmaceutical revenue
Geographical breakdown of pharmaceutical revenue Other international sales 16.6% (sales to licensees, exports, sales in ROW) Italy 20.9% North Africa 3.1% Other W. Europe 4.2% Germany 10.1% Other CEE 4.8% Portugal 3.1% Turkey 6.4% France 9.7% Spain 6.5% Russia, other CIS U.S.A. 7.4% and Ukraine 7.2%
Slide 7: First half 2018 results: Further margin growth
First half 2018 results Further margin growth (million Euro) 1H 2018 1H 2017 Change % Revenue 696.1 650.9 6.9 Gross Profit 493.0 454.1 8.6 as % of revenue 70.8 69.8 SG&A Expenses 205.9 202.4 1.8 as % of revenue 29.6 31.1 R&D Expenses 53.6 47.2 13.7 as % of revenue 7.7 7.2 Other Income (Expense), net
Slide 8: First half 2018 results: Operating segments
First half 2018 results Operating segments Revenue EBIT Treatments for rare diseases 15.8% Treatments for rare diseases 23.0% Primary & specialty care Primary & specialty care 84.2% 77.0% EBIT margin on sales: Treatments for rare diseases, 48.5% Primary & Specialty care, 30.5% 8
Slide 9: Net financial position
Net financial position (million Euro) 30 Jun 2018 31 Dec 2017 Change Cash and short‐term financial 154.6 302.1 (147.4) investments Bank overdrafts and short‐term loans (62.3) (16.6) (45.7) Loans – due within one year (59.4) (51.7) (7.7) Loans – due after one year (589.4) (615.6) 26.2 NET FINANCIAL P
Slide 10: Financial projections
Financial projections 2018 targets ‐ Margins to continue to improve EBITDA 36%, EBIT 32%, Net income 23% 2017 2018 (million Euro) Actual Targets Revenue 1,288.1 1,350 ‐ 1,370 EBITDA 454.7 490 ‐ 500 Operating income 406.5 430 ‐ 440 (EBIT) Net Income 288.8 310 ‐ 315 No acquisitions included in 2018 ta
Slide 11: Company declarations, disclaimers and profile
Company declarations, disclaimers and profile DECLARATION BY THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS The manager responsible for preparing the company’s financial reports Fritz Squindo declares, pursuant to paragraph 2 of Article 154‐bis of the Consolidated Law on Finan